Simple Moving Average(SMA) 50-period (red), 200-period (bold, gray)
RSI-14 with Simple Moving Average 5-period of RSI attached.
Elliott Wave Principles
Market and Price Action (patterns, candlesticks)
Intraday pivots and Intermediate-term support and resistance
Multiple Time-frame Analysis
- Following up with the start of the decline yesterday, we are now seeing the market complete the head and shoulder as it tests the lower bound of the neckline at 1.35. Some might even say it has broken, when breaking below the 1.3540 level.
- There is some support at the moment. A pullback should respect the zone between 1.36 and 1.3650 if the market is developing a strong bearish attempt.
- The bearish targets remain 1.34 and 1.3250 for next week.
- The daily chart below shows lower bearish targets fist at 1.30, 1.29 lows from December and January. A break below this zone could accelerate to 1.26.
Is the Head and Shoulder a pattern you trade? How do you trade it? Do you wait for confirmation? We would love to hear what you think.
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Fan Yang CMT
Chief Technical Strategist